Iranian Banks Research Articles

The effect of financial repression policy on bank liquidity risk (evidence from Central Bank of Iran)

The effect of financial repression policy on bank liquidity risk (evidence from Central Bank of Iran)

Organizations Assessment Based on EFQM Excellence Model Using Neutrosophic Logic (Case Study: Iranian Banking Industry)

ازآنجاکه ارزیابی مدل­‌های تعالی، به‌ویژه مدل تعالی EFQM، با رویکرد منطق رادار مبتنی بر قضاوت ذهنی ارزیابان است و در فضای عدم‌­قطعیت رخ می­‌دهد، هدف پژوهش حاضر ارزیابی دقیق‌­­تر سازمان­‌ها بر اساس مدل تعالی EFQM با استفاده از منطق نوتروسوفیک در صنعت بانکداری است تا مقادیر برآوردی ارزیابی را به روشی دقیق‌تر انجام دهد. در این پژوهش ارزیابی سازمان بر اساس مدل تعالی EFQM با استفاده از منطق نوتروسوفیک که یک منطق سه‌­ارزشی در فضای عدم‌­قطعیت است، صورت گرفت. ابتدا یک ابزار ارزیابی برای سنجش با منطق نوتروسوفیک طراحی شد. روایی سازه و محتوای پرسشنامه به‌­دلیل استفاده از چارچوب مدل تعالی EFQMدر طراحی آن و همچنین تأیید خبرگان حوزه ارزیابی، قابل­‌قبول بوده و پایایی آن با روش دستیابی به مشابهت نظر خبرگان و اتفاق­‌نظر آنان بر پایا­بودن پرسشنامه تأیید شد؛ سپس سازمان­‌های منتخب که شامل سه بانک دولتی، خصوصی و شبه‌دولتی بود با استفاده از این ابزار توسط گروه ارزیابان منتخب جایزه ملّی تعالی سازمانی ارزیابی شدند و درنهایت مقایسه‌­ای بین نتایج این ارزیابی با منطق رادار صورت گرفت. بنا بر نظر خبرگان ارزیابی جایزه ملّی تعالی EFQM و همچنین محاسبات انجام‌شده، ارزیابی سازمان­‌های مورد­مطالعه با رویکرد منطق نوتروسوفیک دقیق­‌تر از ارزیابی با رویکرد منطق رادار است.

Empirical evaluation of structure-conduct-performance paradigm as applied to the Iranian Islamic banking system

PurposeThis paper aims to investigate the impact of market structure and market share on the performance of the Islamic banks operating in the Iranian banking system based on the structure-conduct-performance (SCP) paradigm.Design/methodology/approachThe Iranian Islamic banking system’s market structure is evaluated by using the econometrics method to test the validity of the traditional SCP paradigm. For this purpose, the authors estimate a simple regression model that is consisted of several independent variables, such as the market share, bank size, real gross domestic product, liquidity and Herfindahl-Hirschman index as a proxy variable for concentration and one dependent variable, namely, the profit as a proxy for performance. The panel data includes a data sample of 22 Islamic banks operating from 2006 to 2019. Data are extracted from the balance sheet of Islamic banks and the time-series database of the Central Bank of Iran and World Bank.FindingsThe study’s findings indicate that both concentration and market share have a positive impact on the performance of banks in the Iranian Islamic banking system. This result is contradicted with both traditional SCP and efficient structure hypotheses; however, it confirms the existence of oligopoly or cartel in the Iranian Islamic banking system that few banks try to gain the highest share of profit and maintain their market share by colluding with each other. This result is in contradiction with other research studies about the market structure in the Iranian banking system that claimed that banks in Iran operate under monopolistic competition. In addition, it shows that the privatization of some banks in Iran does not improve and help competition in the Iranian banking system.Originality/valueThis paper is a pioneer empirical study analyzing the market structure, concentration and collusion based on the SCP paradigm in Iranian Islamic banking. The results of the study support the existence of collusive behavior among the Islamic bank in Iran that is not aligned with Sharia. This study clearly shows the difference between ideal Islamic banking and Islamic banking in practice in Islamic countries. This clearly indicates that only prohibiting some operations like receiving interest, gambling and bearing excessive risk is not enough. In fact, the Islamic banking system should be based on the Sharia rule in all aspects and much more modification and study have to be done to achieve an appropriate Islamic banking system. These possible modifications to overcome the issues of cartel-like market structure and collusive behavior in the Iranian Islamic banking system include making the Iranian banking system more transparent, letting foreign banks enter the Iranian banking system and minimizing the government intervention in the Iranian banking system.

Bank Competition and Risk-taking in the Iranian Banking Industry

Bank Competition and Risk-taking in the Iranian Banking Industry

Information Content of Rating Banks Using Early Warnings Indicators

It is necessary for decision-makers to have a rating system in the banking industry in order to reflect the banks' status and performance. Although most institutions across the countries have rating banks and financial institutions, there is a lack of a comprehensive rating system across Iranian banks. Rating requires identifying the appropriate criteria according to the environmental and macroeconomic conditions. For this purpose, 35 components are determined through the opinion of 34 banking and academic experts using the Delphi method and rating is done by the TOPSIS method for 15 banks listed on the Tehran stock exchange over the period of 5 years from 2015 to 2019. The results show that in addition to the quantitative aspects, the qualitative aspects and aspects related to environmental and macro aspects are effective in the native model of banks ratings. Also, there is a positive and significant relationship between banks stock prices variation and the suggested ratings. The obtained results showed that there is a positive and significant correlation between the comprehensive model and early warning system so that the bank's position can be relatively described in the early warning system by identifying it within the model. This evidence addresses the need for a comprehensive consideration of proposed indicators to evaluate and rate banks.

Identifying the Main Factors of Iran’s Economic Growth Using Growth Accounting Framework

This paper aims to present empirical analysis of Iranian economic growth from 1950 to 2018 using data from the World Bank, Madison Data Bank, Statistical Center of Iran, and Central Bank of Iran. The results show that Gross Domestic Product (GDP) per capital increased by 2 percent annually during this time, however this indicator has had a huge fluctuation over time. In addition, the economic growth of Iran and oil revenue have close relationship with each other. In fact, whenever oil crises happen, great fluctuation in growth rate and other indicators happened subsequently. Even though the shares of other sectors like industry and services in GDP have increased over time, the oil sector still plays a key role in the economic growth of Iran. Moreover, growth accounting analysis shows contribution of capital plays a significant role in economic growth of Iran. Furthermore, based on growth accounting framework the steady state of effective capital is 4.27 for Iran’s economy.

IoT-Based Services in Banking Industry Using a Business Continuity Management Approach

Background: The Internet of things (IoT) is a new technology that expanding rapidly and has led to the emergence of new services in the banking industry. Although IoT is an emerging technology in Iran, it is expected to become a paradigm in the future. IoT applications in banking have helped to provide high quality and fast responses to customers anytime, anywhere. Purpose: This research aims to identify and prioritize IoT applications in the Iranian banking industry based on business continuity indicators. Methods: First, based on the comprehensive literature review and practical experiences, IoT applications in the banking industry are identified. Then, each indicator's weight was calculated using the Grey Decision-making trial and evaluation laboratory (DEMATEL). Finally, IoT-based applications in the Iranian banking industry have prioritized using the multi-attribute utility theory (MAUT). Due to the unstable economic conditions for the financial sector, business continuity indicators are employed in this study. Also, the reason for using MAUT is to consider the utility of banking experts for performing IoT banking services. Findings: According to results, IoT-based services in the banking industry, including Transmit instant reports, smart ATMs, non-contact electronic payments, and electronic checks, are identified for Iranian banks. Then, These appropriate services are prioritized with the capabilities of Iranian banks.

Factors affecting the readiness of green business process management in the Iranian banking industry

This study aimed to identify factors affecting the management process readiness of banks and determining the interactions and priority of these factors. To this end, factors affecting the management process readiness in the banking industry were extracted by using an in-depth study of the extant research and qualitative content analysis. Also, fuzzy DEMATEL method was used to explain and assess the interrelationships between the identified factors. The research sample included 30 experts in the process management field in the industry and academicians with knowledge of the concepts of emerging technologies and more than 10 years of experience at the level of managerial activities in the banking industry. Application of DEMATEL revealed that “green awareness”, “green attitude”, “green governance”, and “green technology” are the influential factors, while “green operation”, “green infrastructure”, “green lifecycle”, “green strategy”, and “green policies” are permeable factors. It was also found that “green awareness” has the greatest impact on other factors and green operations is the most permeable factor. The obtained results might help to raise the awareness of individuals including managers, policymakers of the organizations toward establishing and fostering a attitude to adopting operations.

A Dynamic Model for Bank Valuation in Iran

In this paper, a model of the relative valuation of the price to book value with the PMG estimation method has been used to assess the value of banks and financial institutions in Iran between 2009:Q1 and 2017:Q4. The results demonstrate that the market price–to–book value ratio underreacts to changes in fundamental variables in the short-run. The correlation coefficient between the estimated price–to–book value ratio and its market value is moderate. Furthermore, the book value of equity of most banks in Iran converges to a negative value, which means price –to- book value ratio loses its power of interpretation.

Designing and Validating an Excellence Organizational Climate Model in Private Banks in Iran

این پژوهش جهت شناسایی و تبیین ابعاد، مؤلفه‌ها و شاخص‌های جوسازمانی متعالی و اعتبارسنجی آنها انجام شد. روش این تحقیق، آمیخته (ابتدا کیفی با استفاده از گرندد تئوری و نرم‌افزار Maxqda و سپس کمی با استفاده از نرم‌افزار Spss) است. جامعه آماری، بانک‌های خصوصی ایران است. در بخش کیفی، نمونه آماری بر پایه گزینش تدریجی، کفایت نظری و در دسترس بودن انتخاب شد و مصاحبه‌ها برای رسیدن به اشباع نظری ادامه یافت. در بخش کمی، از روش نمونه‌گیری خوشه‌ای چندمرحله‌ای استفاده شد و با استفاده از فرمول کوکران 318 نمونه از 1815 کارمند انتخاب شدند. برای تأمین روایی و پایایی بخش کیفی از روش ارزیابی لینکلن و گوبا و در بخش کمی، از روش محاسبه آلفای کرونباخ استفاده شد. یافته‌های مرحله کیفی تحلیل و مدل پارادایمی جوسازمانی متعالی تبیین گردید. برای اعتبارسنجی الگو از آزمون Wilcoxon استفاده شد. یافته‌ها نشان داد که جوسازمانی متعالی دارای ابعاد اصلی اعتبار مدیر نزد کارکنان، احترام متقابل کارکنان و مدیریت و افتخار کارکنان به شغل و است. افزایش کارایی، افزایش سود سازمان، ارتقای بهره‌وری، ارتقای کیفیت زندگی‌کاری، ارتقای فرهنگ‌سازمانی، ارتقای وجهه سازمان (برندسازی) و آمادگی بیشتر سازمان جهت فعالیت در فضای رقابتی به‌عنوان پیامدهای جوسازمانی متعالی بیان شدند.

تاثیر سیاست سرکوب مالی بر ریسک پذیری اعتباری در نظام بانکی ایران

The problem of overdue receivables and non-performing loans, consequently, credit risk, has already been a major challenge in the Iranian banking system. Also, financial repression policy in most developing economies, such as Iran, is a common policy. The purpose of the present research is to outline the long-term effect of the central bank's monetary policy under conditions of financial repression on credit risk-taking in the Iranian banking sectors. This study was performed using ARDL in the period 2006-2007. The empirical results revealed that interest rate ceiling and restriction on legal reserve ratio policies have reduced the risk appetite of banks. Although misallocation of resources increased the credit risk, the periodic rises in exchange rates have been profitable for the companies, which are conducted under the banks' control due to revenue generation. Thus, the effect of risky lending has been somewhat offset in this way. Generally, it is concluded that the financial repression policy has reduced the credit risk in the Iranian banking sector.

The Measurement of Organizational Social Media Integration Impact on Financial and Innovative Performance: An Integrated Model

Organizations are investing in social media for communicating with customers, promoting employee collaborations, and integrating with partners and suppliers. One of the essential organizational capabilities that can help organizations create and share knowledge and improve their performance and create competitive advantage is social capital and social media integration. Therefore, while examining the role of social media integration on the three dimensions of social capital and the organizational emphasis on knowledge management, the present study has evaluated the impact of knowledge quality on improving organizational financial and innovative performance. This study was conducted in a sample of 280 employees of a bank in Iran. The present study had an applied data collection methodology, using structural equations modeling for analyzing with a descriptive correlational research goal. The results showed that integrated social media positively affects the social capital dimensions and organizational knowledge quality. This study highlights both the potential and limitations of social media in promoting organizational knowledge management. Businesses must consciously manage the assimilation and use of social media to benefit from them. The authors position the study at the intersection of social media, social capital, and knowledge management and explicate how social media works through social capital and organizational knowledge management efforts to affect knowledge quality.

Banking the Bazl: Building a future in a sanctioned economy

In Iran, economic sanctions have adversely impacted the country's money and banking system. The sanctions have caused hyperinflation, economic contraction, and devaluation of the currency. In response, the residents of Iran have developed a variety of coping strategies to ease the miseries of life. This article draws on fieldwork undertaken in Jiroft, a city in southeast Iran, between January and July 2019 to explore how, as Iranian banks struggle under economic sanctions, an old association of financial mutuality called Bazl has been revived in the area. In the reinvented Bazl system, people, frustrated with the banks, form Bazl groups to transfer their cash to each other as gifts with the expectation of reciprocation in the future. The amount of cash circulated through the Bazl system is estimated at 1,500 billion Iranian rials (US$140 million) annually. Under the current circumstance, choosing Bazl over banks as a means of storing value for the future appears to be a rational choice.

Optimizing Asset and Liability Management with Fractional Planning Model Approach (Case Study: Melli Bank of Iran)

Optimizing Asset and Liability Management with Fractional Planning Model Approach (Case Study: Melli Bank of Iran)

The Effects of Income Diversification on Market Power in the Iranian Banking System

The Effects of Income Diversification on Market Power in the Iranian Banking System

Exploring the Main Effect of e-Banking on the Banking Industry Concentration Degree on Predicting the Future of the Banking Industry: A Case Study

Today, regarding the rapid growth of Information and Communications Technology (ICT), e-commerce, and the subsequent expansion of electronic banking, the banking market structure is also expected to dramatically be changed. This paper aims to explore the main effect of electronic banking on the structure of the Iranian banking industry by investigating the banking market concentration degree. To accomplish this aim, an intelligent hybrid model is developed based on multilayer perceptron neural network and fuzzy regression of the effects of banking on the relative electronic share of banks. In the developed method, the neural network parameters such as weights and errors have been considered as the fuzzy parameters to model it under uncertainty. Ultimately, the descriptive statistics are utilized to evaluate how the difference in relative size of banks concerning e-banking has changed, in addition to exploring the main effect of e-banking on the bank’s contribution described as a neural network-fuzzy regression model. Moreover, it shows how the concentration degree in the Iranian banking sector has been reduced. The implemented analysis of the reasons for this decrease reveals that the share of banks has decreased due to an increase in the share of the small banks. Furthermore, model estimation confirms that there exists a positive relationship between banks’ share and the use of electronic banking. Besides, the small banks have strongly been shown to utilize the e-banking so that it would lead to an increase in their share and a decrease in the concentration degree. As such, it can be concluded that e-banking has reduced the concentration degree in Iran. The descriptive statistics are employed to prove it.

Future Scenarios of Iranian Banks in the Face of Fintech

هدف: سناریوهای همکاری بانک‌ها و فین‌تک‌ها در آینده، به یکی از موضوعات نوین در مطالعات نوآوری و کسب‌وکارهای فناوری مالی تبدیل شده است؛ با این‌ حال تاکنون پژوهش دقیقی در خصوص سناریوهای همکاری بانک‌های ایران، به‌عنوان نهادهای سنتی مالی در مواجهه با رشد شتابان فین‌تک‌ها صورت نگرفته است که پژوهش حاضر با همین هدف اجرا شده است. روش: به‌منظور تدوین سناریوها از «روش‌های آمیخته» بهره گرفته شده است. در همین رابطه، نیروهای پیشران، شگفت‌سازها و نشانه‌های ضعیف همکاری بانک و فین‌تک، از طریق مصاحبه با 15 نفر از خبرگان بوم‌سازگان مالی و به‌کمک تحلیل مضمون فهرست شدند. سپس عوامل مؤثر در قالب نظرسنجی از 33 خبره با استفاده از آزمون t تک نمونه‌ای تأیید و در ادامه، به‌کمک تاپسیس فازی اولویت‌بندی شدند. در گام پایانی با مشارکت 144 نفر از مدیران ارشد 16 بانک ایرانی و مبتنی بر روش «شبکه جهانی کسب‌وکار» سناریوهای همکاری تدوین شد. یافته‌ها: دو عدم قطعیت مهم «توسعه گونه‌های مختلف فین‌تک» و «احراز هویت دیجیتال یکپارچه» شناسایی شد و بر این اساس، چهار سناریوی اصلی همکاری بانک و فین‌تک با نام‌های همانی، سینوسی، براکتی و لگاریتمی تشریح شد. سرانجام، راهبردهای سرویس پلاگین اختصاصی و رابط کاربردی برنامه‌نویسی، به‌عنوان راهبردهای پابرجای همکاری به بانک‌ها معرفی شد. نتیجه‌گیری: به‌منظور اتخاذ سناریوی متناسب و همچنین، اجرایی‌کردن راهبردهای پابرجا، لازم است که بانک‌ها اقدام‌هایی را انجام دهند که این اقدام‌ها در قالب مضامین راهبردی، در سه محور حکمرانی ملی، شبکه همکاری و مدیریت فناوری دسته‌بندی شدند. در نهایت با مصاحبه از خبرگان، نتایج به‌دست‌آمده به تأیید رسید.

An investigation on the c-MYC, AXIN1, and COL11A1 gene expression in colorectal cancer.

The high incidence rate of CRC demands early diagnosis of the disease and readiness of diagnostic biomarker. In present study, we have investigated c-MYC, AXIN1, and COL11A1 expression levels in course of CRC progression and their correlation with demographics and clinical risk factors. Fifty-five tumors and 41 normal tissues were obtained from Tumor Bank of Iran, total RNA was extracted, cDNA was synthesized, and RT-qPCR was performed. Results were analyzed using Rest 2009 and SPSS software. Analysis at mRNA level showed upregulation of the two genes; c-MYC with a p-value of 0.001 and COL11A1 with an observed p-value of 0.02, while a p-value of 0.04 indicated AXIN1 downregulation. The observed overexpression of COL11A1 in stage 0 compared to other stages of CRC asserts importance of this gene in CRC prognosis. Moreover, statistical analysis confirms a significant correlation between expression of these genes and several clinical risk factors of CRC. Our study supports the importance of the studied genes and provides further information regarding the molecular mechanism of CRC. Further studies on these genes could elucidate their pivotal role for both early detection and/or diagnosis of CRC in addition to have important biomarkers for CRC management available.

Credit rating dimensions of Iran banks

Credit rating dimensions of Iran banks

Modeling the platform-based banking in commercial banks of Iran

Modeling the platform-based banking in commercial banks of Iran